Deductible expenses for self employed

When you run your own company or you work for yourself, you can make tax deductions on certain items needed for your work. These financial incentives often make the difference between breadline and comfortable living, especially when you’re starting up so it pays to know what the deductible expenses for self employed people are.

Expenses you can claim the tax back on

There are loads of items you can claim tax back against including office costs like stationary and phone charges. Travel costs including petrol and air and taxi fares. Clothing necessary for your work like uniforms of protective clothing like helmets and gloves. All of your staff costs like subcontractor and salary costs can be included, as can items of stock that you pass onto your client (the raw materials needed to produce your work). Bank charges and forms of insurance are also tax deductible for self employed workers, and the costs attached to running your premises like lighting and heating are also tax free. The only other item you can get your tax back on is advertising and marketing costs, including taxes paid against the cost of running your own website.

Costs you can claim as capital gains

You can also take the tax off stuff you buy to use in your business. This is where massive tax savings are made because you’ll get the tax back from purchases of machinery, equipment and vehicles. If you’re able to use a car for both work and personal use, you could buy a car that’s worth a little more than you would otherwise be able to afford thanks to the great tax savings made through your status as a self-employed worker.

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